Buy Coal India, target price Rs 185: Motilal Oswal

Motilal Oswal has buy call on Coal India with a target price of Rs 185. The current market price of Coal India Ltd. is Rs 146.05. Time period given by analyst is one year when Coal India price can reach defined target.

Coal India Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 88989.80 Crore) operating in Mining sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 25963.12 Crore, down -7.19 % from last quarter Total Income of Rs 27974.12 Crore and up 34.72 % from last year same quarter Total Income of Rs 19271.83 Crore. Company reported net profit after tax of Rs 3175.22 Crore in latest quarter.


Investment Rationale
The brokerage expects profitability to recover in FY22E (+24% YoY). Capex run-rate is likely to increase in the near term, but higher dispatches and some normalization in receivables should aid cash generation and maintain dividends (dividend yield: 12%)

Promoter/FII Holdings
Promoters held 66.1 per cent stake in the company as of June 30, 2021, while FIIs held 6.6 per cent, DIIs 21.6 per cent and public and others 5.7 per cent.